The promoter group added a few 1000 shares in November end when the stock hit 675-700 range. Not sure how to read this, though listing of peers may render re-rating of Linc, considering there 2nd quarter blip was a one-off event.
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TOPS now distributing Linc brand
Disc. Invested/Biased.
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I think one should not panic because of less sales
If you are thinking of long term Linc has good products and business
Good time to buy and average
I don’t have money to invest , if I had I would have invested good amount for long term
Just compare it with nifty bullishness in long term and linc ltd , just you have to watch margin of safety
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Some positive development after a long while;
Linc Limited and Mitsubishi Pencil Company announce a strategic joint venture in India to introduce advanced Japanese technology for high-quality, affordable writing instruments tailored for the Indian market. Mitsubishi will hold a 51% stake, leveraging Linc’s strong sales and distribution expertise. The JV aims to revolutionize the writing instruments industry in India and globally.
Key Highlights are:
- Mitsubishi Pencil Company will bring advanced Japanese technology, driving product
quality and innovation. - Linc Limited, with over 30 years of exclusively distributing Mitsubishi’s ‘Uni’ and ‘Uniball’
pens, will leverage its strong sales and distribution expertise across India. - The JV will combine Japanese technological innovation with local production efficiencies to
offer high-quality, affordable writing instruments. - The JV will also serve as a platform for exporting products to international markets served
by both Mitsubishi and Linc. - Mitsubishi Pencil Company will hold a 51% stake in the JV, while Linc Limited will hold 49%.
Also LINC has formed Joint venture for manufacturing of Writing Instruments in Turkiye and its distribution and sale in Turkiye and nearby countries.
It shows company is focusing on export market where margins are usually higher than domestic market.
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Notes from recently concluded Investor/Analyst meeting on the strategic JV with Mitsubishi Pencil, Japan:
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Going in the untapped market with this JV of price point 20-50 rupees, where the market size is INR 500 crores (domestic market).
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The company already has 10-15% market share in this 500 crore market but is looking to increase it further as the opportunity size is huge because the market is growing rapidly as customers are moving up in the value chain.
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Production cost will reduce with this JV.
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The whole chain is like: JV will manufacture the pens, then it will sell them to LINC, which LINC will further sell them to customers.
JV (Mitsubishi) —> LINC —> Target Market
- Mitsubishi has a range of ball pens and roller pens.
- Manufacturing will start in July 25.
- Total INR 20 crores of investment in a 50:50 ratio. However, investment in JV may increase further.
- No investment in factory or land acquisition; entire investment in molds and assembly workings.
- JV will have similar margins as of LINC (need further clarification on the same).
- Same range of products in price points of 20-50 rupees will provide more offerings for customers, hence market share gain for LINC.
- Mitsubishi is not present in this price range (20-80 or 120, not 100% sure) internationally for which JV is established, hence positive for the export market.
(But it will take a little longer, although the opportunity size is huge.)
Expecting minimum asset turns of 8-10 times - Potential to do sales of 200 Crs (20 Crs*10 times)
- Targeting the South Asian market first.
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